EADS, the parent company of airbus plane maker, might soon overhaul its management as France has forced Germany to take direct stake in EADS to guarantee its interests in the company.
EADS is regulated from both France and Germany. Company’s shareholders are criticizing management from a long time and after loosing its acme position to only rival Boeing, shareholders intensified the pressure.
France and Germany have begun to discuss changes to the management structure of The European aerospace and defense group. France has asserted that country will do their best to solve the EADS fiasco, but also warned that it could sell its shares if no conclusion is reached.
Germany charged that France is imposing unnecessary pressure to change the balance of the shareholders’ pact, under which both sides have equal say.
German Chancellor Angela Merkel and Sarkozy will discuss the woe in their schedule meeting in Toulouse on July 16 and hopefully will come up with a consensus.
Shareholders hope that both leaders will examine the issues of future financing for the group, which is facing medium-term financial pressure on the development of the new aircraft, as well as possible changes to the Franco-German shareholder pact. The leaders might even address its reconstructing plan viz. Power 8.
